Discrete event modelling for evaluation and optimisation of power utility energy demand

Purpose: The cost and environmental impact of energy is driving better quantification of energy utilization in a business context. Determining an entire business electrical energy usage, inclusive of core operations and support activities, in a singular evaluation protocol is a challenge. The challenge is exasperated when changes occur in the business, where every change implies significant rework of the business energy calculations. This study develops a holistic energy determination model for the entire business requiring minimum inputs for energy re-calculation, when aspects of the business changes. Design/methodology/approach: The research adopts a quantitative approach enabled through a Discrete Event Model. The model is developed based on the activities performed in every functional area of the business. The activities are captured using business process science. The processes are then developed into a DES Model. The model development cycle includes data collection, model development and configuration, model validation and scenario models for optimization. Findings: A coal fired power generation business, with multiple sites is comprehensively simulated to evaluate the baseline electrical energy demand and associated CO2 emissions. The results are captured at various levels of the business including; Enterprise; site, business function and equipment level. The generation sites operational functions are identified as major electrical energy consumers. The adoption of Industry 4.0 technologies of Internet of Things, Big Data Analytics, mobility and automation demonstrate energy savings of 1% of total site demand. As the Industry 4.0 technologies are applied to a limited number of processes, the results demonstrate the capability of these technologies having a significant impact on electrical energy demand and CO2 emission when applied to a broader spectrum of business processes. Research limitations/implications: The research is limited to a multi-site energy generating company, which is a coal to energy business. Practical implications: The research has significant practical implications, mostly on the mechanisms to evaluate business energy utilisation. The ability to include all areas of the business is a key practical differentiator, as compared to traditional models focusing on operations only. Originality/value: The model is unique in that it is a model that is system agnostic to any production configuration, most especially changes in configuration. This implies that the model can be easily and quickly adapted with changes in the business. This implies the model proposed would be significantly more adaptable when compared to traditional approaches.